Question: Michael's Furniture Store buys a chair at a wholesale price of $121.00. If the markup rate at Michael's Furniture Store is 70%, what is the total markup for the chair in dollars?
Answer: Remember that a markup rate is a percentage of the wholesale price that a store adds to get a selling or retail price. The amount of markup can be found with the following equation: markup rate $\times$ wholesale price $=$ amount of markup Since the markup rate is a percentage, we have to convert it into a decimal first. Percent means "out of one hundred," so $70\%$ is equivalent to $\frac{70}{100}$ which is also equal to $70 \div 100$ $70 \div 100 = 0.70$ Now you have all the information you need to use the formula above! $0.70$ $\times$ $$121.00$ $=$ $$84.70$ The amount of markup on the chair is $$84.70$.